Theresa A. Foudy

Partner | New York

tfoudy@mofo.com | (212) 336-4482

tfoudy@mofo.com
(212) 336-4482

Theresa has represented Chapter 11 debtors, creditors’ committees, indenture trustees, secured and unsecured creditors, private equity sponsors, independent directors, and distressed investors through all stages of bankruptcy litigation.

Over her more than 25-year career, Theresa has worked on many of the United States’ largest and most complex bankruptcy cases, including serving as lead trial counsel in several of the most prominent bankruptcy matters of the last decade. She has advised clients on all types of bankruptcy-related disputes, including suits by or against bankrupt companies, investigations into what led to bankruptcy filings, avoidance actions, and litigation over whether a plan of reorganization should be confirmed.

Theresa’s representative high-profile matters include: serving as lead trial counsel for defendants (wholly owned subsidiaries of a multinational commodity trading and mining company) in a four-day bench trial, over the rejection of a lease to a power plant in an adversary proceeding before the U.S. Bankruptcy Court for the Southern District of Texas; serving as lead trial counsel for defendant directors in a 15-day bench trial on a Creditors’ Committee’s motion for standing to assert claims for breach of fiduciary duty and aiding and abetting breach of fiduciary duty in connection with the directors’ approval of a merger transaction and, after prevailing in the U.S. Bankruptcy Court for the Southern District of New York, handling the successful defense of subsequent appeals by the Creditors’ Committee to the District Court and U.S. Court of Appeals for the Second Circuit; and defending a private equity sponsor against claw-back claims seeking over $350 million in dividends and management fees.

Theresa has been widely recognized for her exceptional bankruptcy litigation skills, including in The Legal 500 and Super Lawyers.

Representative Experience

*Includes prior law firm experience

  • In re Valaris plc, et al. (Bankr. S.D. Tex.) Counsel to the official committee of unsecured creditors of Valaris plc and its affiliated debtors in their chapter 11 cases. Valaris is a leading provider of offshore drilling services to the international oil and gas industry. It currently operates the industry’s largest modern offshore drilling fleet of 67 rigs, maintains drilling operations in nearly every major offshore market spanning 24 countries. Valaris’s customers include many of the leading national and international oil companies, in addition to numerous local and independent offshore exploration and production companies. The company listed total assets of approximately $13 billion and total debts of approximately $7.85 billion in its first day filings.
  • Ad Hoc Group of Constitutional Bondholders of the Commonwealth of Puerto Rico. Counsel to an ad hoc group of holders of bonds issued and/or guaranteed by the Commonwealth of Puerto Rico (constitutional debt) in connection with the first restructuring proceeding under the newly enacted Puerto Rico Oversight, Management, and Economic Stability Act. Working in coordination with other holders of constitutional debt, the ad hoc group has engaged in targeted litigation and efforts to negotiate a plan for the Commonwealth’s restructuring, while simultaneously defending attempts to invalidate more than $6 billion of the Commonwealth’s $18 billion of outstanding constitutional debt.
  • Lead trial counsel for defendants, wholly owned subsidiaries of a multinational commodity trading and mining company, in four-day bench trial seeking declaratory judgments as to numerous property rights and contractual damages associated with the rejection of a lease to a power plant in an adversary proceeding before the US Bankruptcy Court for the Southern District of Texas.
  • Lead trial counsel for defendant directors in 15-day bench trial on motion of the Official Committee of Unsecured Creditors for standing to assert claims against directors for breach of fiduciary duty and aiding and abetting breach of fiduciary duty in connection with their approval of a merger transaction. After prevailing in the US Bankruptcy Court for the Southern District of New York, also handled successful defense of subsequent appeals by the Creditors' Committee to the District Court and US Court of Appeals for the Second Circuit.
  • Conflicts counsel for plaintiff Chapter 11 debtor, a leading provider of residential mortgages. Participated in all aspects of litigation and trial of adversary proceeding against junior secured noteholders.
  • Lead trial counsel for creditor, a state-owned oil and natural gas company, in evidentiary hearing in connection with motion to dismiss bankruptcy case pending in the US Bankruptcy Court for the Southern District of Florida.
  • Lead trial counsel for defendant, an alternative investment manager, in 16- day bench trial of creditors' committee complaint seeking equitable subordination, re-characterization and disallowance of transferee noteholders' claims in adversary proceeding pending in Chapter 11 case in the US Bankruptcy Court for the Southern District of New York.
  • Conflicts counsel for Official Committee of Unsecured Creditors in contested evidentiary hearing on debtors' motion to extend exclusivity in Chapter 11 cases pending in the US Bankruptcy Court for the Southern District of New York.
  • Represented co-chair of Official Committee of Unsecured Creditors for global paper and packaging company during contested confirmation hearing, in which equity holders challenged valuation of bankruptcy estate in cases pending in the US Bankruptcy Court for the District of Delaware.
  • Won jury verdict for plaintiff, the exclusive distributor for brand-name clothing products in Latin America, suing for breach of contract for premature termination of license agreement.
  • Argued before the US Bankruptcy Court for the Southern District of New York on behalf of plaintiff, a global financial services firm, in defense of summary judgment motion brought by defendant, a financial services multinational, seeking dismissal of claims for actual fraudulent conveyance arising from client's issuing guarantee to defendant of billions of dollars of intraday exposure days before filing for bankruptcy.
  • Briefed and argued, on behalf of plaintiff, an institutional lender, as trustee for holders of $250 million of senior secured notes, oppositions to motion to dismiss complaint and amended complaint alleging breach of contract claims against junior noteholders for violations of intercreditor agreement in Chapter 11 cases pending in the US Bankruptcy Court for the Southern District of New York.
  • Brought successful motion to dismiss in the US District Court for the Southern District of New York on behalf of Panamanian financial institution of claims alleging breach of fiduciary duty and conspiracy arising from sale of investment company.
  • Briefed and argued successful motion to dismiss on behalf of global supplier of automotive seating systems of $264 million patent infringement claim brought in Chapter 11 cases pending in the US Bankruptcy Court for the Southern District of New York.
  • Prevailed in motions for summary judgment and sanctions in defense of $60 million claim for fraudulent inducement and breach of contract against provider of liquidation services.
  • Briefed and argued successful motion to dismiss on behalf of provider of liquidation services of claims for equitable subordination or re-characterization of debt brought by an Official Committee of Unsecured Creditors in the US Bankruptcy Court for the Southern District of New York.
  • Obtained dismissal on behalf of accounting firm of third-party complaint brought by investment bank seeking contribution and indemnification from client in connection with claims for fraud brought by bankruptcy estate in the US Bankruptcy Court for the Southern District of New York.
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